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Walmart Canada cuts 210 head office jobs

Reductions represent less than 0.3 per cent of Walmart Canada’s total workforce of 95,000 and affect management and non-management roles.

Walmart Canada said Tuesday it has eliminated 210 jobs in the company's Mississauga head office and field management structure due to organizational changes. (Andrew Francis Wallace / Toronto Star) | Order this photo

Walmart Canada said Tuesday it has eliminated 210 jobs at the company’s head office in Mississauga and at regional and district operations.

The job losses were due to organizational changes and will not affect store operations, according to a statement released after management met with employees at the Toronto Congress Centre.

“Walmart Canada’s stores are not impacted by these changes which are limited to the company’s head office and field management structure,” according to the release.

About 1,400 employees will continue to work at head office.

“It is difficult to say goodbye to colleagues who are affected by this change. We are extremely grateful for their contributions and will ensure they are treated with the respect and dignity they deserve. Affected associates will receive competitive severance packages and access to strong career counseling services,” the release went on to say.

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“The changes are designed to create a more efficient organizational structure as the company positions itself competitively for the future.”

According to Walmart, the reductions represent less than 0.3 per cent of Walmart Canada’s total workforce of 95,000 and affect management and non-management roles.

Walmart has been investing heavily in its store network in Canada, adding and expanding grocery offerings, in order to offer customers a one-stop shopping experience and better compete with Target.

“Walmart Canada is a growth company and continues to accelerate its operations including its food and e-commerce businesses. As a result of the company’s 2014 expansion program, Walmart Canada has been adding 2,900 jobs this year, most of which are at store level,” according to the release.

Like many competitors, including Canadian Tire, Walmart doubled down on improving its stores and services after Target announced in 2011 that it had purchased the leases to Zellers stores in Canada and would begin opening stores in 2013.

Target is still struggling to win market share from existing retailers, after losing more than $1-billion U.S.

At the beginning of this year, Walmart announced it would spend $500-million on an expansion that would add six new stores and improvements to bring the total number of Canadian supercentres to 282 from 247.

The job losses at Walmart come a week after the Canadian division was singled out for praise by Doug McMillon, Wal-Mart Stores Inc. president and chief executive officer, during the firm’s third-quarter report.

“I’m especially pleased by the sales and profit improvements this quarter in Canada, both sequentially and over last year. The investments we’ve made to remodel our stores and drive supercentre expansion are resonating with customers,” McMillon said.

A worldwide day of action against Walmart for its labour practices is planned for Wednesday, including an event in Toronto organized by the United Food and Commercial Workers Union (UFCW).

The Swiss-based UNI Global Union, which says on its website that it represents more than 20 million workers, is staging the worldwide effort, calling on Walmart to treat employees with respect and give them job security and living wages.

At least 30 Walmart employees are expected to join in the protests.

Kevin Shimmin of the UFCW Canada said the protest would focus on three main issues.

“First of all, calling for a minimum wage of 15 dollars an hour for all Walmart associates. Secondly full time jobs for all associates who want them. And thirdly, that Walmart commits to no retaliation against workers who stand up for their rights.”

Shimmin said he hoped Wednesday’s protest would show solidarity with “really exciting mobilization among thousands of workers in the US.”

“I think we message we want to send to associates here in Canada is that we know that they have the exact same issues…with poor working conditions and that there’s every reason why they can stand up join together, and take action.”

Walmart Canada met with employees Tuesday at a Toronto Congress Centre building that was blocked off from the public by private security. A Star reporter who arrived earlier Tuesday was asked to leave the premises.

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